Changes to Seller’s Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR) framework

On 11 March 2017, the government announced that it would reduce the stamp duties that sellers have to pay on residential properties, as well as relax the rules on loan thresholds. With effect from 11 March 2017, the SSD will be payable if a homeowner sell his property with the first 3 years of purchase, instead of the first 4 years of purchase.

The SSD rates were also lowered by 4 percentage points for each tier as follows:

  1. 4% payable on properties sold in the 3rd year
  2. 8% payable on properties sold in the 2nd year
  3. 12% payable on properties sold in the 1st year

(The SSD payable is calculated as a percentage of the selling price of the property. The SSD is generally applicable for private residential properties and generally does not affect the sale of HDB flats owing to the need for HDB owners to satisfy the Minimum Occupation period for HDB flats, which is currently 5 years.)

With regard to the TDSR framework, the government has announced that it will no longer apply the TDSR framework to mortgage equity withdrawals loans with loan-to-value rations of 50% and below. This is to enable homeowners, particularly those in their retirement years, to borrow against the value of their properties and to obtain additional cash.

The current Additional Buyer Stamp Duty rates and loan-to-value limits remains unchanged.

If you would to know more about the SSD, TDSR OR ABSD payable on your properties or if you need legal representation or advice on the conveyancing process of buying or selling a property, please contact us for legal advice and a consultation.